EU, Rival Airlines Balk At Italy's Alitalia Bailout

Law360, New York (April 24, 2008, 12:00 AM EDT) -- With the possibility of bankruptcy looming on the horizon, the Italian government has moved to bail out Alitalia with a €300 million aid package. But the European Commission may put a stop to the potentially anti-competitive rescue effort before the struggling airline can get off the ground.

Regulators said on Thursday that Italy's proposed bailout may violate European Union laws regarding state aid for public companies. The EC said that it would send a letter to Italian authorities expressing its doubts about the funds and asking...
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